Canadian Press
CTV.ca
October 19, 2006

Danny Williams says he’s sorry if he offended anyone when he described Quebec’s political climate as "volatile," but the outspoken Newfoundland premier refused to retract the remarks, saying the blunt assessment was "reality."

"It is not my intention to offend the people of Quebec under any circumstances," Williams said Thursday. "If I have offended them in any way, absolutely, I’d be sorry for it – but acknowledging as well though that I was stating reality."

Three weeks ago, in a bid to garner support for the massive Lower Churchill hydroelectric project in Labrador, Williams said Canada should reduce its reliance on energy from Quebec because the province is too politically unstable.

"The more we can spread out our energy supply means that we won’t be totally dependent on Quebec for energy which, given the volatility of the politics in Quebec, could be a very, very sensitive situation in the years to come," Williams said Sept. 27.

Williams was responding to reports that Quebec was moving ahead with an ambitious, 10-year plan to develop hydroelectric projects in an area known as the Five Rivers in the Lower North Shore region, just south of Labrador.

The Conservative premier said Quebec’s plans are an attempt to thwart Newfoundland’s multibillion-dollar bid to develop a hydroelectric project down river from the existing Churchill Falls dam – an accusation that was quickly rejected by the Quebec government.

On Thursday, Williams struck a more conciliatory tone, saying he is willing to strike a deal with Quebec to develop the Lower Churchill project to sell power into Ontario – but only if Newfoundland and Labrador has complete control over the project.

If a deal can’t be reached, he said, the province is still examining the feasibility of sending power through submarine cables to the Maritimes where it would be relayed to markets in the United States – even if such a project would cost billions more and delay any profits.

Such an engineering feat would be extraordinary, if not unthinkable, said Tom Adams, executive director of Energy Probe, a Toronto-based consumer research group largely funded by individuals and publication sales.

"Nobody’s ever done a submarine cable of the kind he is imagining," Adams said. "I think he is trying to talk his way around previous statements about going it alone. I don’t think there’s a practical possibility of transmitting the power straight from Labrador to southern markets without going through Quebec."

The Lower Churchill project has been on the drawing board in one form or another for several decades. A final decision on the feasibility of building the project, estimated to cost up to $9 billion, will be made by 2009.

If the project is given the go-ahead, the earliest it could produce power is 2015.

The desire to build more power plants on the Churchill River in central Labrador can be traced back to 1972, when the Churchill Falls hydroelectric dam was completed with Quebec’s help.

Under that lopsided deal, set to expire in 2041, at least $750 million has flowed into Newfoundland’s coffers as of 2004, the most recent figures available. Quebec has pocketed almost $1 billion annually.

Kathy Dunderdale, Newfoundland’s natural resources minister, will meet with officials from Ontario’s Energy Ministry next week to discuss the Lower Churchill project.

Observers have warned Ontario faces energy shortages over the next five to seven years without significant new sources of power.